Seoul: South Korean President Lee Jae Myung announced plans to enhance the nation’s self-reliant military capabilities while seeking to resume dialogue with North Korea. In his speech during the presentation of his administration’s first annual budget, President Lee emphasized the importance of bolstering South Korea’s defense mechanisms.
According to Qatar News Agency, President Lee unveiled a 728 trillion-won spending plan for 2026, marking an 8.1% increase from the current year. The plan emphasizes substantial investment in the AI industry, with the government earmarking 10.1 trillion won for AI transformation. This move aims to position South Korea as one of the world’s top three leaders in AI technology, a significant increase from the 3.3 trillion won allocated this year.
The budget further highlights a 19.3% increase in research and development investment across strategic industries, including AI, content, and defense, reaching a record high of 35.3 trillion won. A 150 trillion-won public-private fund is also planned over the next five years to support strategic industries that drive economic growth.
For defense, 66.3 trillion won has been allocated, an 8.2% rise from this year, to advance conventional weapon systems into cutting-edge capabilities and to accelerate progress towards a self-reliant defense. President Lee emphasized the importance of national pride in defense, reiterating his commitment to regain wartime operational control from the United States by the end of his term in 2030.
Additionally, President Lee highlighted a tariff agreement with the United States, ensuring South Korean tariff levels remain competitive in key export sectors like automobiles and semiconductors. This agreement aims to establish fair competition on an equal footing with competing countries.